Naira Drops to N1,740 Against Dollar in Parallel Market, Gains in Official Market

The Naira further depreciated against the dollar in the parallel market on Wednesday, slipping to N1,740 per dollar from the previous day’s rate of N1,735. Meanwhile, in the official Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira showed signs of strength, appreciating to N1,645.4 per dollar.

Data from the FMDQ Exchange highlighted a notable shift in the NAFEM exchange rate, with the Naira appreciating by N44.48 from Tuesday’s rate of N1,689.88 per dollar. This improvement reflects efforts within the official market to stabilize the Naira amidst broader economic pressures.

In addition to these rate changes, the trading volume in NAFEM saw a sharp increase. The total dollar turnover rose by 122.5%, reaching $236.84 million compared to $106.44 million traded the previous day. This increase in liquidity signals heightened activity as demand for the dollar persists.

The gap between the parallel market and NAFEM rates has widened significantly, with a difference of N94.6 per dollar compared to Tuesday’s margin of N45.12.